Bad
Faith News
Texas bad faith lawsuits can present many challenges for policyholders
-November 14, 2004
In Texas alone, hundreds of homeowners complain to the Texas Department of Insurance every year about unfair settlement practices and offers. In the past five years, the department has received more than 2,500 complaints. According to consumer groups and plaintiffs attorneys, policyholders can take steps to allow for the best settlement possible. From documenting everything and doing your homework, policyholders can negotiate favorable claims settlements.
Arguing an insurance claim can be extremely time consuming. For some policyholders, going to court is a last resort and often times exposes policyholders to even more hassle, which some people choose not to endure. In order to reach the best outcome possible people should begin by documenting everything. Taking pictures of damage and taking notes after speaking to various insurers will provide specific dates, estimates and other records to be presented if insurance claim challenges are later made.
Understanding the full extent of your insurance policy and how much coverage is really available are factors that many policyholders never take the time to thoroughly learn. By becoming aware of the exact terms of the policy, any misinterpretations about the coverage can be cleared up early.
Settling insurance disputes can be extremely expensive, and for policyholders that have already suffered unplanned losses, the process can be additional strain. A homeowner can file a lawsuit if suspecting unfair practices, but the costs can be very high and may not be worth it. In Texas, recovering punitive damages after tort reform legislation in the 1990s made it harder to recover in insurance bad faith cases. It is on a policyholder not only to prove bad faith, but some type of personal injury resulting from the insurer's actions as well.
These circumstances force policyholders to decide if the damages suffered are worth pursing in possible bad faith claims. A bad faith attorney is often crucial in proving wrongdoing. Even if a bad faith lawsuit is now pursued, a bad faith attorney will be able to advise the policyholder of their legal rights and options and what the best course of action might be.
If
you would like more information on the elements of bad faith, please contact us to confer with a bad faith lawyer.
